How To Get A House Insurance Policy In Australia

Transcription

1 Home Insurance Product Disclosure Statement and Policy Booklet

2 RACV Home Insurance is issued by Insurance Manufacturers of Australia Pty Limited ABN AFS Licence No Nexus Court, Mulgrave VIC RACV Home Insurance is distributed to members of Royal Automobile Club of Victoria (RACV) Ltd, by RACV Insurance Services Pty Ltd ABN AFS Licence No

3 Home Insurance Supplementary Product Disclosure Statement These Supplementary Product Disclosure Statements (Supplementary PDS) update, and should be read with, the Home Insurance Product Disclosure Statement and Policy Booklet (PDS) Edition 2. These documents together with your current Certificate of Insurance make up the terms and conditions of your insurance policy with us. SUPPLEMENTARY PDS 2.1 This Supplementary PDS Edition 2.1 will apply to policies with a commencement date on or after 17 June 2013 or with a renewal effective date on or after 17 June SPECIFIED PORTABLE VALUABLES (PAGE 43) Under Not covered on page 43 of the PDS the following exclusion is inserted: bicycle while being used in a competitive race or time trial. Continued next page Page 1 of 6

4 FLOOD (PAGES 20 & 21) We have made some changes to what we cover for flood. The current Flood wording on pages 20 and 21 of the PDS is deleted and is replaced by the following wording: FLOOD If loss or damage is caused by flood. For example, damage is caused when heavy or sustained rainfall upriver causes a river or creek near you to overflow. Covered fl o o d landslide or subsidence that happens immediately as a direct result of a flood. flood means the covering of normally dry land by water that has escaped or been released from the normal confines of any of the following: (a) a lake (whether or not it has been altered or modified); (b) a river (whether or not it has been altered or modified); (c) a creek (whether or not it has been altered or modified); (d) another natural watercourse (whether or not it has been altered or modified); (e) a reservoir; (f) a canal; (g) a dam. Page 2 of 6

5 Not covered loss or damage to: - retaining walls - gates, fences or free standing walls if they are not structurally sound or well maintained - pontoons, jetties or bridges - gravel driveways - swimming pool/spa covers that are more than 5 years old loss or damage caused by actions of the sea, unless the loss or damage is the result of: - storm surge that happens at the same time as a flood has caused damage to your home or contents. Storm surge is the increase in sea level that usually happens when there is an intense storm or cyclone. STORM (PAGE 20) We have made some changes to what we cover for storm. The current Storm wording on page 20 of the PDS is deleted and is replaced by the following wording: STORM If loss or damage is caused by storm. For example, hail damages your roof. Covered violent wind, cyclone or tornado rain, thunderstorm, hail or snow landslide or subsidence that happens immediately as a result of a storm sudden, excessive run-off of water as a direct result of a storm in your local area Page 3 of 6

6 Not covered loss or damage to: - retaining walls - gates, fences or free standing walls if they are not structurally sound or well maintained - pontoons, jetties or bridges - gravel driveways - swimming pool/spa covers that are more than 5 years old loss or damage caused by water which enters your home through any tarpaulins or fixings set up while you re renovating or altering your home loss or damage caused by actions of the sea, unless the loss or damage is the result of: - storm surge that happens at the same time as a storm has caused damage to your home or contents. Storm surge is the increase in sea level that usually happens when there is an intense storm or cyclone. DEFINITIONS (PAGES 71 TO 74) The definition of flood on page 72 of the PDS is deleted and replaced by the following definition: Flood means the covering of normally dry land by water that has escaped or been released from the normal confines of any of the following: (a) a lake (whether or not it has been altered or modified); (b) a river (whether or not it has been altered or modified); (c) a creek (whether or not it has been altered or modified); (d) another natural watercourse (whether or not it has been altered or modified); (e) a reservoir; (f) a canal; (g) a dam. Page 4 of 6

7 SUPPLEMENTARY PDS 2.2 This Supplementary PDS Edition 2.2 will apply to policies with a commencement date on or after 24 November 2013 or with a renewal effective date on or after 6 January UNSPECIFIED PORTABLE VALUABLES (PAGE 44) Under Not covered on page 44 of the PDS the following exclusion is inserted: a bicycle while being used in a competitive race or time trial. Page 5 of 6

8 RACV Contact Details Enquiries 13 RACV ( ) Website racv.com.au Head Office RACV Insurance Services Pty Ltd ABN AFS Licence No Princes Highway Noble Park North VIC 3174 RACV Home Insurance is issued by Insurance Manufacturers of Australia Pty Limited ABN AFS Licence No Nexus Court, Mulgrave VIC RACV Home Insurance is distributed to members of Royal Automobile Club of Victoria (RACV) Ltd, by RACV Insurance Services Pty Ltd ABN AFS Licence No G /13 Page 6 of 6

9 A message to RACV Members from RACV Insurance Every month over 75,000 Victorians choose RACV Insurance. And it s no wonder. After all, we set out to offer excellent value for money and the very best in service. With RACV Home Insurance, claims assistance is available 24 hours a day, 7 days a week, just call Of course, another great reason to insure with RACV Insurance is that you automatically become a member. RACV is, first and foremost, a membership organisation. So everything we do, is for the benefit of our members. A good example of this is the Years of Membership Benefits program which rewards loyalty with discounts on a range of RACV products and services, including an annual discount on RACV Home Insurance. The longer your RACV membership continues, the more you save. The benefits of RACV membership don t end there. Special member rates are available for access to our resorts at Cape Schanck, Cobram, Inverloch, Noosa, Royal Pines and Torquay Golf Club. You ll save even more money through special offers with participating organisations across Victoria, Australia and overseas with our Show Your Card & Save program. Members also receive discounts on a wide variety of RACV products and services, and on purchases from RACV shops. RACV is committed to representing members interests in areas such as road safety and mobility, through advocacy, and through sponsorship of community programs. It s all part of RACV s promise to be there for our members in every way we can. 1

10 Table of contents If you can't find what you are looking for, please use the index on page Key details about your policy 5 Who s covered by your policy 6 - More than one person insured 6 Your insurance cover 6 - Type of insurance 6 - Sum insured 7 - Listed events 7 - Optional cover you can add to your policy 8 - What we pay for your home or contents 8 - Contents replacement value new for old 8 Our agreement with you 9 2. Buildings and contents we insure 10 The buildings we insure 11 - Buildings we don t insure 11 The types of contents we insure 12 - Contents we don t insure 13 Where we insure your contents 14 Your General Contents 15 - Maximum amount we pay for some contents 15 - Increasing your cover 15 - Limits that apply to certain locations What you re covered for 18 The events we cover 19 - Storm 20 - Flood 20 - Water and oil leaks 21 - Tsunami 22 - Earthquake 22 - Lightning 22 - Fire 23 - Theft or attempted theft 23 - Vandalism or a malicious act 23 - Broken glass buildings 24 - Broken glass contents 24 - Impact damage 24 - Animal damage 25 - Explosion 25 - Riots or civil commotion 25 Other cover 26 - Food spoilage 28 - Fixtures for owners and landlords strata scheme 28 - Furniture and furnishings for landlords strata scheme 28 with no active Owner's Corporation - Furniture and furnishings for landlords non strata scheme 29 - Temporary accommodation for home owners 29 2

11 - Temporary accommodation for tenants or strata 30 scheme owners - Loss of rent for landlords 30 - Building materials 31 - Demolishing and removing debris 31 - Locating the cause of damage 31 - Rebuilding fees 32 - Meeting building regulations 32 - Mortgagee discharge costs 32 - Keys and locks 33 - Credit card theft 33 - Visitors belongings 33 - Funeral expenses 34 Liability cover claims made against you 35 - What is liability cover? 35 - What we cover 35 - When we provide liability cover 36 - When you lodge a claim with us 36 - Liability cover what we don't cover Optional cover you can add to your policy 38 About optional cover 39 Options to increase the events we cover 40 - Accidental damage 40 - Burn out of electric motors fusion 40 Options to increase your cover for certain contents 41 - Specified Items inside your home 42 - Specified Portable Valuables 43 - Unspecified Portable Valuables General exclusions that apply to your policy 45 Exclusions for all cover Claims and what we pay 48 What happens when you make a claim 49 - Your responsibilities 49 - Excesses 50 Working out what we pay for your claim 51 What we pay for Buildings Insurance 52 - The most we pay 52 - How we settle your buildings claim 52 - Lifetime guarantee 53 - Credit provider s rights 53 What we pay for Contents Insurance 54 - The most we pay 54 - How we settle your contents claim 54 - What happens after we pay a sum insured 54 How we settle certain things 55 - Matching materials 55 - Carpet, vinyl, tiles or floorboards 55 3

12 4 - Pairs, sets or collections 55 - Damaged or recovered property 55 Businesses registered for GST 56 Recovery against another party 56 How we pay claims some examples 57 - Claim 1 Repairing your home 57 - Claim 2 Replacing your contents 57 - Claim 3 Your home and contents are totally destroyed 58 - Claim 4 Replacing your Specified Portable Valuables 58 - Claim 5 Replacing your Unspecified Portable Valuables 58 - Claim 6 Reparing your rental property loss of rent 59 - Claim 7 Liability claim at your home 59 - Claim 8 Liability claim away from your home Changes to your policy 60 Changes you can make 61 - Change your policy 61 - You change homes 61 - You want to cancel your policy 61 Changes we can make 62 - Cancel your policy 62 - Give you written notice Your premium 63 How we work out your premium 64 - Discounts you may be eligible for 64 Paying your premium 65 - Payment options 65 - What happens if you don t pay on time Other information you need to know 66 How to resolve a complaint or dispute 67 Privacy of your personal information 68 - Privacy Charter 68 - When you provide your personal information 68 - Information you provide about another person 69 - Privacy of your personal information for marketing 69 purposes General Insurance Code of Practice 70 Financial Claims Scheme 70 Aussie Assist help with emergencies 70 Prime Cover Home Insurance 70 Additional Aussie Assist Benefits for Prime Cover Home Insurance 70 Definitions 71 Index 75

13 1. Key details about your policy This section provides key details about your policy. You should read this section first to understand how your policy works: Who s covered by your policy Your insurance cover Our agreement with you. Words with special meaning Some words in this Product Disclosure Statement (PDS) have special meaning see the Definitions on pages 71 to 74. 5

14 Who s covered by your policy Your policy covers: you which means all of the people named as the insured on your current Certificate of Insurance your family who normally lives with you at your home which means your legal or de facto spouse and any other member of your family or your spouse s family. If you live with people that are not part of your family for example, your friends, we only cover them if they are named as the insured. Your insurance cover Your policy is made up of cover for your home and cover for your contents. The insurance cover we provide under your policy depends on: the type of insurance you choose the amount of insurance you choose the listed events you're covered for and any other cover that applies, and any optional cover you add to your policy. Type of insurance Your current Certificate of Insurance shows the type of insurance you have chosen. Buildings and Contents Insurance Buildings Insurance Contents Insurance Covers both your home and contents Covers your home Covers your contents Key details about your policy More than one person insured If more than one person is named as the insured, then we will treat a statement, act, omission or claim by any one of those people as a statement, act, omission or claim by all of those people. 6

15 Sum insured Your current Certificate of Insurance shows the amount of insurance you have under your policy as the: Buildings sum insured, and/or Contents sum insured. Make sure you insure your home and contents for their replacement value. To help you estimate your replacement value, visit our website at and use our buildings and contents calculators. Buildings sum insured The Buildings sum insured is the amount of insurance you choose to cover your home. Contents sum insured The Contents sum insured is the amount of insurance you choose to cover your contents. It is made up of: your General Contents sum insured, plus the sum insured that applies to any optional cover you have for: - Specified Items - Specified Portable Valuables - Unspecified Portable Valuables. We insure certain types of contents see page 12. Listed events We cover your home or contents when certain things happen for example, fire, theft, storm, flood and earthquake. These are known as listed events. You can make a claim if a listed event you are covered for takes place and causes loss or damage to your home or contents during the policy period. The listed events we cover under your policy are shown in Table 3.1 on page 19. Other Cover We also cover other things which may cause loss or damage for example credit card theft. And, we pay for other costs in certain situations for example rebuilding fees. We insure certain types of buildings see page 11. The other cover we give you is shown in Table 3.2 on page 27. Your insurance cover 7

16 Optional cover you can add to your policy Your policy provides a certain level of cover for your home or contents. What we pay for your home or contents Various things affect what we pay for your home or contents. These include: what causes the loss or damage that is, was it caused by a listed event that is covered under your policy? the amount you have insured your home or contents for and any optional cover you have chosen where your contents are when the loss or damage takes place, and any limits that apply to what we pay. Contents replacement value new for old If we replace an item that is part of your contents, we will replace it with a new one. This is known as new for old. Your insurance cover You can add these options to your policy to increase your cover: Accidental Damage Burn out of electric motors fusion Specified Items Specified Portable Valuables Unspecified Portable Valuables. We provide more details about optional cover in Section 4. When you add any of these options to your policy: you need to pay an extra premium for the increased cover we give you, and the options you select are shown on your current Certificate of Insurance. We provide more details about what we pay in Section 6. 8

17 Our agreement with you Your contract Your policy is a contract between you and us and is made up of: your current Certificate of Insurance, and this Product Disclosure Statement (PDS), and any applicable Supplementary PDS. Certificate of Insurance Your current Certificate of Insurance shows the insurance cover you have chosen and any optional cover you have under your policy. It also shows the period your policy covers we only cover you for incidents that happen during this time. Special conditions We may impose special conditions on your policy that may exclude, restrict or extend cover for a person or a particular matter. Your current Certificate of Insurance shows any special conditions that apply to your policy. Embargo for listed events We may not cover you for some events for example, bushfire, storm or flood if they cause loss or damage during an embargo period. Under 'Special conditions' in your current Certificate of Insurance, we show any embargo event and the period it applies to. 21 day cooling-off period You can tell us to cancel your policy within 21 days from when it was issued. If you choose to cancel your policy, we ll refund the premium you paid us in full (as long as you haven t made a claim on your policy). GST All dollar values described in this PDS include GST. Exclusions and conditions Exclusions and conditions may apply to the cover you have chosen: in Section 5, we set out the general exclusions that apply to your policy throughout this PDS, we set out any specific exclusions and conditions with the cover they apply to on page 49, we set out your responsibilities when you are insured with us and make a claim. Paying your premium In return for paying your premium, we provide the cover you have chosen. You can pay your premium annually or by monthly instalments for details about how to pay your premium and what happens if you don t pay, see Section 8. Our agreement with you 9

18 2. Buildings and contents we insure We insure certain types of buildings and contents. We describe what we insure in: The buildings we insure The types of contents we insure Where we insure your contents Your General Contents. 10

19 The buildings we insure Under Buildings Insurance, we insure certain types of buildings. Your home Your home includes: domestic residential buildings at your site that can be locked up home improvements at your site for example, garage, carport or in-ground pool fixtures or items permanently attached or fixed to your home for example, light fixtures, built in wardrobes, kitchen cupboards and floating floorboards. Buildings we don t insure We don t insure: boarding houses or hostels hotels or motels commercial buildings exhibition or display homes commercial farm buildings. We will refuse a claim and cancel your policy if your home is or becomes any of these things. We don t consider carpets to be part of your home unless you are a landlord see pages 28 and 29. Words with special meaning Some words in this PDS have special meaning. We define key words like 'home', 'home improvements' and 'fixtures' see pages 71 to 74. The buildings we insure 11

20 The types of contents we insure 12 The types of contents we insure Your contents Items that are not permanently attached or fixed to the structure of your home that you or your family: own, or are responsible for as part of a written employment contract or a hire or lease agreement (except a tenancy agreement). If you have Contents Insurance, then you will always have General Contents cover. And if you choose to increase your cover for certain items, then you may also have optional cover for your: Specified Items Specified Portable Valuables Unspecified Portable Valuables. Proof of loss and ownership When you make a claim, we may ask you to provide proof of ownership and value for an item for example, a receipt, valuation or photograph. So, make sure you keep these documents safe. Table 2.1 Types of contents we insure This table shows the types of contents you may have and the items we insure under them. Contents Items we insure General Contents The things you or your family keep in and around your home which include: furniture, furnishings and rugs carpets (if you are an owner who lives in your home, your carpets are included as part of your General Contents) electrical items for example, fridges and washing machines home theatre equipment for example, TVs clothes, shoes and manchester for example, sheets and towels toys and sporting equipment handyman tools for example, drills and saws gardening equipment for example, leaf blowers and shovels. If you run a business, trade or profession from your home, we also include your home office equipment as General Contents for example, furniture, computer or office equipment. Optional cover you can add see pages 41 to 44 Specified Items Specified Portable Valuables Unspecified Portable Valuables Items which can be insured by you or your family for more than the amounts specified when insured as General Contents. The items you can insure as Specified Items are shown in Table 4.3 on page 42. Items you or your family might take with you and want covered outside your home. You need to specify the items you want to insure which may include your: engagement ring or watch camera or laptop. Items you or your family might take with you and want covered outside your home. Under this option, you don t need to specify any items we insure ALL of the items shown in Table 4.4 on page 44.

21 Contents we don t insure We don't insure any of these items under Contents Insurance: loose or unset gemstones plants, trees or shrubs growing in the ground grass, rocks and soil on your site building materials or items at your site that are due to be fitted to your home (we provide limited cover for those items under Buildings Insurance - see page 31) animals the cost to replace any credit or financial transaction cards illegal items - this includes illegally downloaded digital media goods kept for sale, distribution, on display, exhibition or on consignment stock used in any business, trade or profession watercraft except for sailboards, canoes, kayaks, and non-motorised surf skis trailers, caravans, aircraft or aerial devices vehicles including: - motor vehicles - any registrable motorcycles - any motorcycles greater than 75cc - ride-on vehicles (for example, motorised golf buggies or carts) except for mobility scooters and ride on lawnmowers that you only use to mow your lawn. The types of contents we insure 13

22 Where we insure your contents Where we insure your contents One of the things that affects what we pay for your contents is where your contents are when the loss or damage takes place. Table 2.2 shows the locations where we insure your contents. Conditions and limits apply at certain locations: for General Contents see pages 16 and 17 for optional cover see pages 41 to 44. We also cover your contents when you are taking them to your new home see page 17. You can increase your cover for some of your General Contents items by adding options to your policy see Section 4. Table 2.2 Where we insure your contents Location of contents At your home Inside In the open air Away from your home Inside another building in Australia for up to 60 days In a safety deposit box at a bank in Australia Anywhere else in Australia or New Zealand The rest of the world Taking your contents to your new home Moving into your new home In storage In storage in Australia General Contents Specified Items Specified Portable Valuables Unspecified Portable Valuables 14

23 Your General Contents Under Contents Insurance, we provide a certain level of cover for your General Contents. Maximum amount we pay for some contents When certain valuable or portable items are part of your General Contents, we limit how much we pay for them see Table 2.3. For example, if a fire in your home damages your CDs, DVDs and other discs that are valued at $5,000, we will only pay up to $2,500 in total for all of them. Increasing your cover You can add options to your policy to increase the amount we insure your contents for and the locations where we insure your contents. You can increase the events we cover under your Contents Insurance by adding options to your policy for a summary of these options see Table 4.1 on page 39. Table 2.3 Maximum amount we pay for some contents This table shows the items we limit and whether you can add an option to your policy to increase your cover for those items. We do not limit items that are not shown here for example your TV or home theatre. General Contents we limit Jewellery Watches Card collections CDs, DVDs, records, tapes, game cartridges, discs of any sort and legally downloaded digital media Curios or objects valued as curiosities Gold or silver items (not coins, bullion, sovereigns, jewellery and watches) Stamps/medals Uncirculated mint issue or proof coins or notes, ancient or rare coins or notes, sovereigns and bullion Works of Art Tools of trade see page 73 for the definition Computer software Title deeds, passports, bonds and negotiable documents Cash, cheques, money orders, gift certificates and negotiable financial documents Unattached accessories, keys, equipment or spare parts for an aerial device, aircraft, caravan, motor vehicle, trailer or watercraft The most we pay $1,000 in total $1,000 in total $2,500 in total $2,500 in total $2,500 in total $2,500 in total $2,500 in total $2,500 in total $2,500 in total $1,000 in total The cost to replace the software only The cost to replace the document only $200 in total $500 in total Option to increase cover Your General Contents 15

24 Your General Contents Limits that apply at certain locations We insure your General Contents when they are: at your home inside at your home in the open air away from your home taking your contents to your new home moving into your new home in storage. We limit what we pay for your General Contents depending on where they are when the loss or damage takes place. We also exclude some items at certain locations see this page and page 17. At your home inside We cover your General Contents when they are inside your home. Covered General Contents inside your home. At your home in the open air We cover some of your General Contents when they are in the open air at your site. Covered General Contents in the open air at your site. The most we pay is 20% of the General Contents sum insured. Not covered these items when they are part of your General Contents: - computers and related equipment - personal electronic devices for example, mobile phones and PDAs - the items shown in Table 2.3 on page 15 - contents in or on a caravan, mobile home or watercraft. Away from your home We cover some of your General Contents when they are away from your home. Covered General Contents that are: temporarily inside another building in Australia for 60 days or less, and you: - are residing in that building, or - lend them to someone else for personal use at their home or site in a safety deposit box at a bank in Australia. The most we pay is 20% of the General Contents sum insured. Not covered computers and related equipment personal electronic devices for example, mobile phones and PDAs the items shown in Table 2.3 on page

25 Taking your contents to your new home If your General Contents are being taken from your current home to your new permanent home in Australia. Covered General Contents that are being taken to your new permanent home in a vehicle that is: - involved in a collision - damaged or destroyed by fire - stolen. Moving into your new home If we currently insure your General Contents and you re moving into your new permanent home in Australia. Covered from the day you start moving your General Contents at both your current and new homes for up to 14 days. Your General Contents are covered on the same terms as you insured them. Not covered General Contents in your new home after the 14 day period ends if we didn t agree to cover them. Conditions you must give us the details of your new permanent home within 14 days from when you start moving if we agree to cover your General Contents in your new permanent home after the 14 day period ends, then you must pay us any additional premium. In storage We cover some of your General Contents while they are in storage in Australia. Covered General Contents in storage in Australia. Not covered the items shown in Table 2.3 on page 15. Conditions For us to cover your General Contents while they are in storage, you need to contact us and provide: the value of the items, and the address where they are stored. If we agree to cover your General Contents while they are in storage, then you may need to pay us any additional premium. Your General Contents 17

26 3. What you're covered for We cover you in certain situations. We describe what you're covered for in: The events we cover Other cover Liability cover claims made against you. 18

27 The events we cover We cover your home or contents when certain things happen. These are known as 'listed events'. You can make a claim if a listed event takes place and causes loss or damage to your home or contents during the policy period. In this section, we tell you what events you re covered for and any specific exclusions and conditions that apply to the event. General exclusions may also apply see Section 5. Also, if you don't meet your responsibilities when you make a claim you may put your claim or cover at risk see page 49. How we settle a claim is set out in Section 6. Table 3.1 Listed events Listed events Buildings Insurance Contents Insurance Storm Flood Water and oil leaks Tsunami Earthquake Lightning Fire Theft or attempted theft Vandalism or a malicious act Broken glass buildings You can add options to your policy to cover you for extra events: Accidental damage Burn out of electric motors fusion. For more details, see Section 4. Broken glass contents Impact damage Animal damage Explosion Riots or civil commotion The events we cover 19

28 The events we cover Storm If loss or damage is caused by a storm. For example damage caused when: hail breaks your windows a cyclone lifts the roof off your home. Covered violent wind, cyclone or tornado rain, thunderstorm, hail or snow landslide or subsidence that happens immediately as a result of a storm. Not covered loss or damage to: - retaining walls - gates, fences or free standing walls if they are not structurally sound or well maintained - pontoons, jetties or bridges - gravel driveways - swimming pool/spa covers that are more than 5 years old loss or damage caused by water which enters your home through any tarpaulins or fixings set up while you re renovating or altering your home loss or damage caused by actions of the sea, unless the loss or damage is the result of: - storm surge that happens at the same time as a storm has caused damage to your home or contents. Storm surge is the increase in sea level that usually happens when there is an intense storm or cyclone. Flood If loss or damage is caused by a flood. For example damage caused when: sustained rainfall causes a river or creek near you to overflow heavy rain causes a build up of water in the street gutters and the water enters your home. Covered flood landslide or subsidence that happens immediately as a direct result of a flood. Flood means: rain which results in water pooling on, flowing from or failing to drain away from: - a body of water - land - roads and streets water that escapes or is released from a body of water. A body of water can include a river, lake, dam, stormwater channel or canal, but not the sea. 20

29 Not covered loss or damage to: - retaining walls - gates, fences or free standing walls if they are not structurally sound or well maintained - pontoons, jetties or bridges - gravel driveways - swimming pool/spa covers that are more than 5 years old loss or damage caused by actions of the sea, unless the loss or damage is the result of: - storm surge that happens at the same time as a flood has caused damage to your home or contents. Storm surge is the increase in sea level that usually happens when there is an intense storm or cyclone. Water and oil leaks If loss or damage is caused by water or oil leaking or escaping from an item shown here. Covered water leaking or escaping from: - house gutters, drainpipes or pipes - sanitary fixtures for example, baths or toilets - appliances for example, washing machines or dishwashers - waterbeds - aquariums - water tanks - swimming pools oil leaking from a fixed heating system or sealed portable heater costs to locate the cause of damage (if we agree to pay these costs before you make any arrangements). Not covered water leaking or escaping from a shower recess or shower base costs to repair or replace the item that the water or oil leaked or escaped from loss or damage caused by storm surge. The events we cover 21

30 Tsunami If loss or damage is caused by tsunami. Covered tsunami. Earthquake If loss or damage is caused by an earthquake. Covered earthquake landslide or subsidence that happens immediately as a result of an earthquake. Lightning If loss or damage is caused by lightning. Covered lightning power surge only as a result of lightning. The events we cover 22

31 Fire If loss or damage is caused by a fire. Covered fire bushfire. Not covered if the fire was started with the intention to cause damage by: - you or someone who lives in your home for example, a tenant, or - someone who enters your home or site with your consent, or the consent of someone who lives there damage which results from scorching or melting when your home or contents did not catch fire. Theft or attempted theft If loss or damage is caused by a theft or attempted theft. Covered theft or attempted theft. Not covered theft or attempted theft by: - you or someone who lives in your home for example, a tenant, or - someone who enters your home or site with your consent, or the consent of someone who lives there. Vandalism or a malicious act If loss or damage is caused by vandalism or a malicious act. Covered vandalism or a malicious act. Not covered if the vandalism or malicious act is committed by: - you or someone who lives in your home for example, a tenant, or - someone who enters your home or site with your consent, or the consent of someone who lives there. The events we cover 23

32 Broken glass buildings If any item shown here is unintentionally broken and has a fracture that extends through its entire thickness. Covered under Buildings Insurance glass panels in fixtures cooktop or oven door vitreous china or acrylic or fibreglass fixed shower base, bath, spa bath, basin, sink, toilet, bidet or sanitary fixtures the reasonable cost to reconnect any electrical components to the item. Not covered an item that broke because heat was directly applied to it glass in a greenhouse or glasshouse water or sewerage pipes any damage caused by the broken item. Broken glass contents If fixed glass in an item shown here is unintentionally broken and has a fracture that extends through its entire thickness. Covered under Contents Insurance fixed glass in: - your furniture, including outdoor furniture - a light fitting - a mirror or picture damage that is also caused to the frame of a broken mirror or picture the reasonable cost to reconnect any electrical components to the item. Not covered glass that is in a TV, radio or computer equipment any damage caused by the broken item. Impact damage If loss or damage is caused by an item shown here. Covered under Buildings Insurance and Contents Insurance loss or damage caused by the impact of: - external aerials, masts, flagpoles or satellite dishes - aircrafts, vehicles or watercrafts - debris from space, aircrafts, rockets or satellites - trees or branches. Covered under Buildings Insurance if a tree on your property causes loss or damage to your home and we agree it needs to be removed, then we pay the costs to: - cut down and remove the tree - treat the stump so it doesn t grow. The events we cover Not covered loss or damage caused by tree cutting, lopping or felling on your site costs to remove the stump costs to cut down or remove a tree if it didn t cause any damage to your home or contents. 24

33 Animal damage If loss or damage is caused by an animal not kept at your site. Covered loss or damage caused by animals not kept at your site. Not covered loss or damage caused by: - vermin and insects - birds pecking, scratching or biting. Explosion If loss or damage is caused by an explosion and there is physical evidence of the explosion. Covered explosion landslide or subsidence that happens immediately as a result of an explosion. Not covered the item that exploded. Riots or civil commotion If loss or damage is caused by a riot or civil commotion. Covered riot, civil commotion, industrial or political disturbance. The events we cover 25

34 Other cover We may also provide 'other cover' for your home or contents during the policy period. Table 3.2 shows the other cover we give you and the type of policy the cover applies to. In this section, we outline any specific exclusions and conditions that apply to the 'other cover'. General exclusions may also apply see Section 5. Also, if you don t meet your responsibilities when you make a claim you may put your claim or cover at risk see page 49. How we settle a claim is set out in Section 6. When you can claim for other cover In most cases, you can make a claim for other cover when a listed event causes loss or damage to your home or contents and we agree to pay for that loss or damage. Other cover and your sum insured Your Buildings sum insured or Contents sum insured is the most we ll normally pay when you make a claim. However for these items, we ll pay on top of your sum insured: Temporary accommodation for home owners Temporary accommodation for tenants or strata scheme owners Loss of rent for landlords Mortgagee discharge costs. Other cover 26

35 Table 3.2 Other cover Other cover Buildings Insurance Contents Insurance Furniture and furnishings for landlords - non strata scheme Furniture and furnishings for landlords - strata scheme with no active Owner's Corporation Temporary accommodation for home owners Loss of rent for landlords Building materials Demolishing and removing debris Locating the cause of damage Rebuilding fees Meeting building regulations Mortgagee discharge costs Food spoilage Fixtures for owners and landlords - strata scheme Temporary accommodation for tenants or strata scheme owners Credit card theft Visitors belongings Keys and locks Funeral expenses Other cover 27

36 Other cover Food spoilage If a listed event causes an interruption to your electricity supply and food or prescription medication in your refrigerator or freezer is spoiled. Covered under Contents Insurance up to $500 to replace the spoiled food or prescription medication. When you only claim for food spoilage, you don t need to pay an excess. But, your No Claim Bonus may be affected when you renew your policy. Fixtures for owners and landlords strata scheme If your home is under a strata or similar scheme and a listed event causes loss or damage to the fixtures shown here. Covered under Contents Insurance the following fixtures: - built-in furniture and cupboards - stoves - hot water services - shower screens - paint and wallpaper - built-in air-conditioner - fixed awnings - solar panels. Not covered items that are: - covered by an insurance policy taken out by an owners corporation or similar body, or - part of common property loss or damage caused intentionally by: - you or someone who lives in your home for example, your tenants, or - someone who enters your home or site with your consent, or the consent of someone who lives there. Furniture and furnishings for landlords strata scheme with no active Owner's Corporation If your home is under a strata or similar scheme with no active Owner's Corporation and a listed event causes loss or damage to the items shown here. Covered under Buildings Insurance your furniture, furnishings or carpets in your home for tenants use. The most we pay is 10% of the Buildings sum insured. Not covered loss or damage caused intentionally by: - you or someone who lives in your home for example, your tenants, or - someone who enters your home or site with your consent, or the consent of someone who lives there if you or your family live in your home. 28

37 Furniture and furnishings for landlords non strata scheme If your home is not under a strata or similar scheme and a listed event causes loss or damage to the items shown here. Covered under Buildings Insurance your furniture, furnishings or carpets in your home for tenants use. The most we pay is 10% of the Buildings sum insured. Not covered loss or damage caused intentionally by: - you or someone who lives in your home for example, your tenants, or - someone who enters your home or site with your consent, or the consent of someone who lives there if you or your family live in your home. Temporary accommodation for home owners If a listed event causes loss or damage to your home and we agree you can t live in it and you need to move out so it can be repaired or rebuilt. Covered under Buildings Insurance costs for temporary accommodation that we agree are reasonable and appropriate for you, your family and your pets that you normally keep at your site any additional living expenses that we agree are appropriate costs to remove and store your contents and then return them to your home. We pay these costs for the reasonable time we agree it should take to repair or rebuild your home for up to 12 months from when the listed event took place. We pay this on top of the Buildings sum insured. Conditions you must have lived in your home permanently before the listed event took place we must agree to pay the costs before you make any arrangements we won t cover costs caused by unreasonable delays in repairing or rebuilding your home. Other cover 29

38 Other cover Temporary accommodation for tenants or strata scheme owners If a listed event causes loss or damage to your home and we agree you can t live in it and you need to move out so it can be repaired or rebuilt. Covered under Contents Insurance if you own and live in your home, the costs for temporary accommodation that we agree are reasonable and appropriate for you, your family and your pets that you normally keep at your site if you are a tenant, any extra rent costs we agree are reasonable for your temporary accommodation you, your family and your pets that you normally keep at your site any additional living expenses that we agree are appropriate costs to remove and store your contents and then return them to your home. Not covered these costs if covered by an insurance policy taken out by an owners corporation or similar body. Conditions you must have lived in your home permanently before the listed event took place we must agree to pay the costs before you make any arrangements we won t cover unreasonable delays to repair or rebuild your home. We pay these costs for the reasonable time we agree it should take to repair or rebuild your home for up to 12 months from when the listed event took place. We pay this on top of the Contents sum insured. Loss of rent for landlords If a listed event causes loss or damage to your home and we agree your tenants can't live in it and need to move out so it can be repaired or rebuilt. Covered under Buildings Insurance the rent you lose during the reasonable time it should take to repair or rebuild your home. We pay the rent you lose for the reasonable time we agree it should take to repair or rebuild your home for up to 12 months from when the listed event took place. We pay this on top of the Buildings sum insured. Not covered if you or your family live in your home. 30

39 Building materials If you re renovating or altering your home and a listed event causes loss or damage to your building materials at your site. Covered under Buildings Insurance building materials for example, bricks, tiles or timber items that are due to be fitted to your home for example, an oven or dishwasher. The most we pay for these items is up to $1,000. Not covered sand, gravel or soil (we don t classify them as building materials). Demolishing and removing debris If a listed event causes loss or damage to your home and we agree you need to demolish part or all of your home or remove any debris. Covered under Buildings Insurance costs to demolish and remove debris costs to make your site safe for example, the costs to install a temporary fence around the damaged area. Conditions we must agree to pay the costs before you make any arrangements. Locating the cause of damage If a listed event causes loss or damage to your home and you need to confirm that it was caused by a listed event. Covered under Buildings Insurance the reasonable costs you have paid to find the cause of damage if we agree the loss or damage was caused by a listed event. Conditions the costs must relate directly to the part of your home that suffered the loss or damage we must agree to pay the costs before you make any arrangements. Other cover 31

40 Rebuilding fees If a listed event causes loss or damage to your home and you need to pay certain fees to repair or rebuild your home. Covered under Buildings Insurance the reasonable fees for architects, engineers or surveyors any fees we agree you need to pay to meet the requirements of a statutory authority. Not covered fees to rebuild any part of your home which was an illegal construction if a statutory authority served a notice on you before the listed event took place. Conditions we must agree to pay the rebuilding fees before you make any arrangements. Meeting building regulations If a listed event causes loss or damage to your home and you need to meet current building regulations to repair or rebuild the part of your home that was damaged. Covered under Buildings Insurance the costs to meet current building regulations to repair or rebuild the part of your home that was damaged. Not covered costs to meet building regulations: - that were already in place when your home was built, renovated or altered - for undamaged parts of your home for example, installing insulation in ceilings that were not damaged. Conditions we must agree to pay the costs before you make any arrangements. Mortgagee discharge costs If we agree to pay the Buildings sum insured and you need to discharge any mortgage over your home. Covered under Buildings Insurance the administrative costs to discharge any mortgage over your home. We pay these costs on top of the Buildings sum insured. Other cover 32

41 Keys and locks If a key for an external lock to your home is stolen during a theft at your site and we agree to pay your claim for theft. Covered the reasonable costs to replace the key to your home and the lock barrels it operates. Credit card theft If your credit card is stolen from your home during a theft and used without your consent and we agree to pay your claim for theft. Covered under Contents Insurance up to $1,000 towards any money you must pay to the credit card organisation if your credit card is used by someone without your consent. Conditions you must comply with all the conditions of the credit card organisation. Visitors belongings If a listed event causes loss or damage to your contents and to your visitors belongings. Covered under Contents Insurance up to $500 for your visitors' belongings that are inside your home. Not covered cash. Other cover 33

42 Funeral expenses If a listed event takes place at your site which causes loss or damage to your home or contents and you or a member of your family die: within 90 days of that event, and as a result of that event. Covered under Buildings Insurance up to $10,000 in total towards funeral expenses for each incident. Covered under Contents Insurance up to $10,000 in total towards funeral expenses for each incident. Other cover 34

43 Liability cover claims made against you Your policy provides cover for claims that are made against you or your family. This is known as liability cover. In this section, we describe the liability cover you have under your policy. We also outline the exclusions and conditions that apply to this cover. General exclusions also apply to liability cover see Section 5. Also, if you don't meet your responsibilities when you make a claim you may put your claim or cover at risk see page 49. What is liability cover? Liability cover protects you or your family for claims that may be made against you or them for an incident which causes: death or bodily injury to someone else, or loss or damage to someone else s property. The most we pay for any one incident is $20 million under Buildings Insurance and $20 million under Contents Insurance. This includes legal costs when our lawyers handle the claim. What we cover Covered under Buildings Insurance We cover the legal liability of you or your family for: death or bodily injury to someone else, or loss or damage to someone else s property in an incident that takes place in your home or at the site and for which you or your family is responsible as an owner or occupier of your home or the site. For example, you may be liable when someone falls and is injured when visiting your home. Liability cover claims made against you 35

44 Liability cover claims made against you Covered under Contents Insurance We cover the legal liability of you or your family for: death or bodily injury to someone else, or loss or damage to someone else s property in an incident that takes place outside the site, but within Australia. For example, you may be liable if you are riding your bicycle on a road and cause an accident. In addition, if you are a tenant or own your home under a strata or similar scheme, we cover the legal liability of you or your family for: death or bodily injury to someone else, or loss or damage to someone else s property in an incident that takes place in your home or at the site and for which you or your family is responsible as an owner or occupier of your home or the site. When we provide liability cover To be entitled to liability cover: the claim must result from an incident which takes place during the policy period someone must make a claim against you or your family for the incident, and you or your family must lodge a claim with us for liability cover. We provide examples of how we calculate claims under Liability cover see page 59. When you lodge a claim with us When a claim is lodged with us, if you or your family are entitled to liability cover, we will: act for you or your family or arrange for a lawyer to represent you or your family attempt to resolve the claim if we consider that you or your family are liable for the incident defend the claim in a court or tribunal if we consider that you or your family are not liable for the incident. We can decide whether to defend or resolve a claim and how much to pay to resolve a claim. 36

45 Liability cover what we don t cover It s important for you to read these specific exclusions and conditions that apply to the liability cover we provide under your policy. Death or bodily injury We don t cover death or bodily injury to: you or your family any person who lives with you or your family except when they are a tenant or boarder living in your home. Loss or damage to property We don t cover loss or damage: to property that you, or your family own or have in their custody, control or possession except when you are a tenant and you or your family cause loss or damage to your landlord s property (including the home) that has been left for you to use to property that any person who lives with you or your family owns or has in their custody, control or possession except when that person is a tenant or boarder living in your home. Other liability exclusions We will not cover: the legal liability of you or your family in connection with any house, land or other property that you or your family own or occupy, or have owned or occupied in the past, other than your home or your site shown on your current Certificate of Insurance any exemplary or punitive damages, fines or penalties claimed, ordered or awarded against you or your family fines or court costs if you or your family are charged or convicted under a law. We will not cover you or your family if liability arises or results from: you or your family agreeing to accept liability for the claim death or bodily injury to any person employed by you or your family under a contract of service any act or omission by you or your family, or a person acting with the consent of you or your family, which shows a reckless disregard for the consequences of that act or omission a deliberate and unlawful act by you or your family, or a person acting with the consent of you or your family any business, trade or profession other than the renting of your home for domestic use any professional sporting activity the transmission of a disease by you or your family using or owning a vehicle, aircraft or watercraft (except for a bicycle, mobility scooter, wheelchair, golf buggy, cart or remote controlled toy) subsidence or landslide your home or the site being used for farming asbestos, whether directly or indirectly building work to your home or on the site, or at any other house, land or property that you or your family owned or occupied in the past, which costs or cost more than $50,000 an incident caused by an animal, except: - if it is a pet dog, cat or horse kept in your home or on the site, or - if it is a pet horse kept off-site on agistment an incident caused by a dog if a relevant authority has declared it to be a dangerous dog. Liability cover claims made against you 37

46 4. Optional cover you can add to your policy You can add options to your policy to increase your cover for your home or contents. This section includes: About optional cover Options to increase the events we cover Options to increase your cover for certain contents. 38

47 About optional cover You can increase your cover by adding options to your policy for a summary of these options see Table 4.1. Any option you select is shown on your current Certificate of Insurance and applies during the policy period. You need to pay extra When you add an option to your policy, you need to pay an extra premium for the increased cover we give you. Table 4.1 Optional cover This table shows the options you can add to Buildings Insurance or Contents Insurance. Optional cover Accidental damage Burn out of electric motors fusion Specified Items Specified Portable Valuables Unspecified Portable Valuables Buildings Insurance Contents Insurance Under the optional cover shown in this section, we tell you what you re covered for and any specific exclusions and conditions that apply to that option. General exclusions may also apply see Section 5. Also, if you don't meet your responsibilities when you make a claim you may put your claim or cover at risk see page 49. How we settle a claim is set out in Section 6. About optional cover 39

48 Options to increase the events we cover Options to increase the events we cover We cover your home and contents when any of the 15 listed events shown in Table 3.1 on page 19 takes place. You can increase the events we cover by adding options to your policy to cover you for: Accidental damage Burn out of electric motors fusion. Accidental damage You can choose to cover your home and contents for accidental damage that is, mishaps around your home that are caused unintentionally. Covered under Buildings Insurance damage to your home that is caused unintentionally for example, you re in the roof space and accidentally put your foot through the ceiling. Covered under Contents Insurance damage to your General Contents or Specified Items that is caused unintentionally and happens in your home or at your site for example, your child knocks over your TV. Not covered damage caused by: - inherent defects and structural defects - mildew and algae - any animals kept at your site - water entering your home through an opening made for the purpose of alterations, additions, renovations or repairs - any process of cleaning involving the use of chemicals damage that is covered under a listed event shown in Table 3.1 see page 19 damage to: - retaining walls - electronic equipment or data as a result of an electronic malfunction or failure, a mechanical malfunction or failure, or a virus or processing error - fishing and sporting equipment, musical instruments or firearms while someone is using them loss or damage caused by storm surge see page 73 for the storm surge definition. Burn out of electric motors fusion You can choose to cover your electric motors for fusion for up to 15 years from when they were made. Covered under Buildings Insurance an electric motor that burns out and is part of your home for example, in a ducted air conditioning unit costs for the service call, parts and labour charges. Covered under Contents Insurance an electric motor that burns out and is part of your General Contents for example, in a washing machine or fridge costs for the service call, parts and labour charges up to $500 to replace any spoilt food or prescription medication in the refrigerator or freezer. Not covered an electric motor that: - is covered by a warranty, or - you use for a business, trade or profession, or - you don t keep in your home or at your site we don t pay to remove or re-install submerged or underground motors. 40

49 Options to increase your cover for certain contents Table 4.2 Options to increase cover for certain contents This table shows the options you can add to your policy to increase your cover for some of your General Contents and the most we pay. We limit how much we pay for certain valuable items that are part of your General Contents for example, we pay up to $1,000 in total for your jewellery' and $1,000 in total for your 'watches. You can increase your cover for certain contents by adding options to your policy see Table 4.2. When you insure an item under any of these options, that item is no longer part of your General Contents. The options you choose are shown on your current Certificate of Insurance. Optional cover Specified Items see page 42 Specified Portable Valuables see page 43 Unspecified Portable Valuables see page 44 The most we pay under optional cover We cover an item for its replacement value up to its sum insured when the item is inside your home or when taking your contents to your new home and at your new home. We cover an item for its replacement value up to its sum insured when the item is anywhere in Australia or New Zealand. We pay up to $10,000 in total for all items outside Australia and New Zealand. We cover all of the items shown in Table 4.4 for their replacement value up to the amount of cover you select as your sum insured when these items are anywhere in Australia or New Zealand. For one item, we pay up to 20% of your sum insured. Don t insure your items more than once For example, if you insure your engagement ring under Specified Portable Valuables, then your ring is no longer part of your General Contents and you may need to review your General Contents sum insured. Options to increase your cover for certain contents 41

50 Options to increase your cover for certain contents Specified Items inside your home You can choose to insure some of your valuable items inside your home for more than what we normally pay for those items see Table 4.3. Your Specified Items are shown on your current Certificate of Insurance. Covered under Contents Insurance loss or damage to your Specified Items: - when a listed event takes place, or - when they are accidently damaged and you have optional cover for 'Accidental damage' under Contents Insurance Specified Items when they are at the following locations as described for your General Contents: - taking your contents to your new home - moving into your new home For the conditions and limits that apply at these locations see page 17. Not covered Specified items when they are at the following locations: - in the open air at your site - away from your home - in storage. As described for General Contents see pages 16 and 17. Table 4.3 Valuable items you can choose to increase This table lists the items you can increase your cover for by insuring them as Specified Items. It also shows the maximum amounts we pay for these items when they are not Specified Items. Items you can insure for more Jewellery Watches Card collections CDs, DVDs, records, tapes, game cartridges, discs of any sort and legally downloaded digital media Curios or objects valued as curiosities Gold or silver items (not coins, bullion, sovereigns, jewellery and watches) Stamps/medals Uncirculated mint issue or proof coins or notes, ancient or rare coins or notes, sovereigns and bullion Works of Art Tools of trade (the limit will not apply if you are operating a business, trade or profession from your home and we have agreed to cover you). General Contents maximum amounts $1,000 in total $1,000 in total $2,500 in total $2,500 in total $2,500 in total $2,500 in total $2,500 in total $2,500 in total $2,500 in total $1,000 in total 42

51 Specified Portable Valuables Under this option, we cover your portable valuable items anywhere that is, inside your home, in the open air at your site and outside your site. However, we do limit your cover if you take your items outside Australia or New Zealand. List of items and value If you add this option to your policy, you need to give us a list of the items and the amount you want to insure them for. You may also need to provide written valuations or receipts for the items we ll let you know. Your Specified Portable Valuables are shown on your current Certificate of Insurance. Covered under Contents Insurance Specified Portable Valuables that are: - lost or stolen - unintentionally damaged. We pay up to your Specified Portable Valuables sum insured for an item. If the loss or damage takes place outside Australia or New Zealand, the most we pay is $10,000 in total for all items. Not covered loss or damage from scratching or denting an item items being cleaned, repaired or restored fishing and sporting equipment, musical instruments or firearms while someone is using them. Options to increase your cover for certain contents 43

52 Options to increase your cover for certain contents Unspecified Portable Valuables You can ask us to cover all of the portable valuable items that are shown in Table 4.4. This is known as Unspecified Portable Valuables cover. Under this option, we cover these portable items anywhere in Australia or New Zealand that is, inside your home, in the open air at your site and outside your site. Choosing a sum insured You can choose a sum insured of $1,000, $2,000, $3,000, $4,000, or $5,000. When you choose an amount, keep in mind that for any one item we ll only pay up to 20% of the amount you choose. For example, you select $2,000 as your Unspecified Portable Valuables cover. If someone steals your camera, then we pay up to $400 for the camera (20% of $2,000). And if someone steals several of the items shown here, then the most we pay is $2,000. The amount you choose is shown on your current Certificate of Insurance. Table 4.4 Items covered by Unspecified Portable Valuables This table shows the only items we cover under Unspecified Portable Valuables. Items baby capsules, child car seats, prams bicycles binoculars, opera glasses, telescopes cosmetics and toiletries handbags, purses and wallets, excluding their contents medals musical instruments non-fabric travel bags, suitcases and briefcases, excluding their contents photographic and video equipment and associated accessories picnic sets, picnic rugs and non-fabric camping equipment portable music systems, CB radios sporting equipment and related accessories typewriters, calculators and electronic organisers writing instruments Covered under Contents Insurance Unspecified Portable Valuables that are unintentionally damaged, lost or stolen anywhere in Australia or New Zealand in the policy period loss or damage up to the amount you choose as your Unspecified Portable Valuables sum insured. The most we pay for any single item is 20% of the amount you choose as your sum insured. Not covered loss or damage from scratching or denting an item items being cleaned, repaired or restored fishing and sporting equipment, musical instruments or firearms while someone is using them. 44

53 5. General exclusions that apply to your policy There are certain situations when we won t provide cover under your policy. This section outlines the general exclusions that apply to all cover we provide under your policy. This includes liability cover, unless we say it doesn't. Other exclusions and conditions There are specific exclusions, conditions and limits that apply to some parts of your cover. These are described throughout this PDS with the information they relate to. The specific exclusions that apply to your liability cover are shown on page 37. Your responsibilities when you are insured with us and make a claim are shown on page 49. You may put your insurance claim or cover at risk if you do not meet your obligations to us. 45

54 General exclusions that apply to your policy Exclusions for all cover These exclusions apply to all cover under your policy. What we don t cover Loss, damage, injury or death arising from: rust, corrosion, gradual deterioration, depreciation, wear or tear erosion, including coastal erosion actions of the sea, unless the loss or damage is the result of: - storm surge that happens at the same time as a storm or flood has caused damage to your home or contents Actions of the sea include: - high tides or king tides - sea waves - normal movement or changes in ocean levels - storm surge subsidence or landslide unless it happens immediately as a result of: - an earthquake or explosion - a storm or flood atmospheric conditions or extreme temperature mould vermin or insects birds pecking, scratching or biting tree lopping or felling on your site tree roots radioactivity, or the use or escape of any nuclear fuel, material or waste the lawful seizure, confiscation, nationalisation, or requisition of your home or anything else covered by this policy any war whether it is formally declared or not or hostilities or rebellion pollutants or contaminants that discharge or escape any act of terrorism that involves any biological, chemical, or nuclear pollution, contamination or explosion any intentional act or omission by: - you, your family or someone who lives in your home for example, the tenants, or - someone who acts with your or your family's consent, or the consent of someone who lives in your home hydrostatic pressure including loss or damage to swimming pools or similar structures any illegal activity you or your family are involved in. What we don't cover mechanical, structural or electrical failure of an item costs arising from any business interruption the cost of reinstalling or replacing electronically stored files the intellectual or sentimental value of an item the settling, shrinkage or expansion in buildings, foundations, walls or pavements claims arising from incidents that occur outside the policy period compensation for distress, inconvenience or other non financial loss, except if covered under liability cover consequential financial loss - for example, loss of profits, except if covered under liability cover. 46

55 Maintaining and occupying your home We don't cover loss, damage, injury or death arising from: faulty design or workmanship previous damage that has not been repaired you leaving your home unoccupied for 60 consecutive days or more and not maintaining it in a lived-in state by: - keeping the lawns mowed and garden tidy - stopping regular mail and newspaper deliveries, and - organising someone to check inside and outside your home at least once a week you not maintaining your home in good repair and condition. This means your home must be watertight, structurally sound, secure and well maintained you not maintaining your site in good repair and condition you illegally keeping explosives, flammable or combustible substances or liquids in your home or at your site you not taking reasonable care to protect your home or contents against loss or damage. General exclusions that apply to your policy 47

56 6. Claims and what we pay Home Insurance Buildings and Contents This section provides information about our claims process and what we pay when you make a claim: What happens when you make a claim Working out what we pay for your claim What we pay for Buildings Insurance What we pay for Contents Insurance How we settle certain things Businesses registered for GST Recovery against another party How we pay claims some examples. When you need to make a claim, we want to help you as much as we can. We re available 24 hours a day, 7 days a week on

57 What happens when you make a claim When you make a claim, we will: ask you some questions over the phone tell you if you need to pay any excess and how to pay it. We may organise help through our preferred repairers and suppliers. Your responsibilities When you make a claim, you have certain responsibilities. These responsibilities also apply to your family or any person that is covered by your policy. Co-operate You must co-operate fully with us, even if we have already paid your claim. This may include: providing us with all the information, documents and help we need to deal with your claim immediately sending us any letters, notices or court documents that you receive about any incident which has resulted, or may result in a claim against you being interviewed by us attending court to give evidence. Proof of loss and ownership When you make a claim, we may ask you to provide certain documents to: prove that you owned the items help us identify your items. The types of documents we ask for depend on the situation and can include: purchase receipts valuation certificates credit card or bank statements photos. If you don t meet these responsibilities, we may not pay a claim in full, or we may decide not to pay it at all. Settle claims and make admissions You must not: attempt to settle a claim that is made against you without our permission, or make any admissions to anyone about any incident covered by your policy limit by agreement our rights to recover money from someone else. You must be truthful and frank in any statement you make to us. Prevent further loss or damage You must do everything reasonable to prevent further loss or damage to your home or contents. ABN and input tax credit claimed If you are a business registered or required to be registered for GST purposes, then you must provide us with: your Australian Business Number (ABN), and the percentage of any input tax credit you have claimed or are entitled to claim on the premium you paid. We may compare information you provide to us with a range of other sources for example websites, such as auction or sale websites. Report to the Police You must: immediately report to the Police any theft, attempted theft, vandalism or malicious act, and give us any incident report number they give you. Inspections and quotes If we ask you, you must: let us or our representative inspect your home or contents allow us to obtain quotations from any repairer or supplier. What happens when you make a claim 49

58 What happens when you make a claim Excesses An excess is the amount you contribute towards the cost of your claim. There are 3 types of excesses: basic accidental damage, and special. The type of excess you need to pay depends on what your claim relates to. Also, you may need to pay more than one excess. Your current Certificate of Insurance shows the types of excesses that apply to your policy. Paying your excess When you make a claim, you must pay any excess that applies to: us, or the repairer or supplier. We will tell you who to pay your excess to. We can only finalise your claim after you have paid any excess that applies. If you want more details about excesses, then see our RACV Home Insurance Premium, Excess, Discounts & Benefits Guide. You can get a copy by visiting or by calling us on 13 RACV ( ) or by visiting an RACV shop. When an excess does not apply You don t need to pay an excess for a liability claim or for the other cover we give you under 'food spoilage'. 50

59 Working out what we pay for your claim We follow these steps to work out what to pay for your claim. These steps don't apply to liability claims. Step 1 Type of insurance Do you have: Home Buildings and Contents Insurance? Buildings Insurance? Contents Insurance? Step 5 Sum insured How much is: your Buildings sum insured? page 7 your Contents sum insured? page 7 the sum insured that applies to any optional cover you have? page 7 Step 2 Step 3 Step 4 Your home and contents do we insure the things that suffered the loss or damage? pages 11 to 13 The incident is it a listed event? pages 20 to 25 is it covered under other cover? pages 26 to 34 is it covered under any optional cover you have? pages 39 to 44 Exclusions and conditions Is your claim affected by: any general exclusions? pages 46 and 47 any specific exclusions and conditions shown throughout this PDS? not meeting your responsibilities? page 49 Step 6 Step 7 Limits to cover do maximum limits apply to your contents? page 15 do we limit cover based on the location of your contents? pages 16 and 17 do other limits apply? do limits apply under any optional cover you have? pages 39 to 44 Excess what type of excess applies to your claim? page 50 how much is your excess? 51

60 What we pay for Buildings Insurance What we pay for Buildings Insurance If we agree to cover your claim under Buildings Insurance, then we will: pay the cost to repair or rebuild the part of your home that was damaged (whichever is lower) pay for any extra costs we cover under 'other cover' see below. The most we pay The most we pay for your home is the Buildings sum insured. Other cover We may also pay some costs on top of the Buildings sum insured under 'other cover' for: Temporary accommodation for home owners see page 29 Loss of rent for landlords see page 30 Mortgagee discharge costs see page 32. How we settle your buildings claim We will choose to settle your claim for loss or damage to your home or 'other cover' in one of the following ways: 1. Arrange for repairers, builders or suppliers to repair or rebuild your home. If you agree, we can arrange for our preferred repairers, suppliers or builders to repair or rebuild your home. 2. Pay you the reasonable cost to repair or rebuild your home. We can choose to: pay you pay your nominated repairer, supplier or builder, or provide you with store credits from one of our nominated suppliers. For example, we may pay you directly when: you decide not to repair or rebuild your home, or you don t start repairing or rebuilding your home within 6 months from when the damage takes place, or within any longer period we agreed to in writing. 3. Pay you the buildings sum insured We may do this when we consider your home to be a total loss or when we choose to do so. If we pay you the Buildings sum insured, then your policy ends and you don t get a refund of your premium. We will continue your liability cover (see pages 35 to 37) for up to 6 months from when the listed event took place. However, liability cover will end during this period if: construction starts at your site, or you sell the land, or you take out a new Buildings Insurance policy for your site. 4. Paying for other cover If we agree to pay you for 'other cover', then we will choose the method of settlement. We provide examples of how we calculate claims under Buildings Insurance see pages 57 to

61 Lifetime guarantee We provide a lifetime guarantee when your home is repaired or rebuilt by one of our preferred repairers or builders. This means: we guarantee the workmanship of repairs that we authorised for the lifetime of your home we will fix any defect caused by poor workmanship. We will decide on what needs to be done to fix any defect. When you re not covered by this guarantee This guarantee does not apply to: repairs you authorised yourself loss, damage or failure of any electrical or mechanical appliance or machine wear and tear that is consistent with normal gradual deterioration of your home. Credit provider's rights You may have used all or part of your home as security for a loan with a credit provider. Your credit provider may be a bank, credit union or other type of lender. When you have Buildings Insurance, we note any credit provider you tell us about on your current Certificate of Insurance. When you have a noted credit provider: we treat your home as being under mortgage we treat any statement, act, omission or claim by you as a statement, act, omission or claim by the credit provider we may recover any payment either in your name or the credit provider s name. When you have Contents Insurance, we don t note any credit provider on your current Certificate of Insurance. But, you need to give us their name when you make a claim for a contents item. Payments to the credit provider We may decide to pay you cash for a claim on your mortgaged property. If so, we will first pay the credit provider the lower of these amounts after deducting any excess and unpaid premium: the Buildings sum insured, or the reasonable cost of repairing or replacing your home, or the balance then owing to the credit provider under the mortgage. However, we will only pay the credit provider if: they are noted on your current Certificate of Insurance they give us any help we ask for the amount we have agreed to pay you is more than $20,000 - if it is less than $20,000 we can choose to pay you or the credit provider. If we make a payment to a credit provider, then the payment discharges our obligation to you under your policy for the amount paid. What we pay for Buildings Insurance 53

62 What we pay for Contents Insurance 54 What we pay for Contents Insurance If we agree to cover your claim under Contents Insurance, then we will: pay the cost to repair or replace your contents (whichever is lower) pay for any extra costs we cover under 'other cover' see below. The most we pay What we pay to repair or replace your damaged contents depends on whether the contents are covered under: General Contents Specified Items Specified Portable Valuables Unspecified Portable Valuables. The most we pay is the Contents sum insured. Other cover We may also pay some costs on top of the General Contents sum insured under other cover for: Temporary accommodation for tenants or strata scheme owners see page 30. We provide examples of how we calculate claims under Contents Insurance see pages 57 to 59. How we settle your contents claim If we agree to cover your claim under Contents Insurance, then we can choose to pay your claim through any of these ways: repair an item, or replace an item with the same or similar type and quality, or pay you the reasonable cost of what it would cost us to repair or replace the item, or provide you with store credits to replace an item from one of our nominated suppliers, or pay you the sum insured or provide you with store credits from one of our nominated suppliers to the value of the sum insured that applies to: - General Contents - Specified items - Specified Portable Valuables - Unspecified Portable Valuables. If we agree to pay you for 'other cover' we will choose the method of settlement. Conditions we can nominate the repairer or supplier and claims settlement method. if you don't agree with the method of settlement we choose, we will pay you what it would cost us to repair or replace the item. What happens after we pay a sum insured Contents sum insured If we pay the Contents sum insured, then: your policy ends and you don t get a refund of any premium. General Contents sum insured If we pay the General Contents sum insured, then: your General Contents cover ends and you don t get a refund of any premium. Sum insured for Specified Items or Specified Portable Valuables If we pay for a Specified Item or a Specified Portable Valuable, then: your cover on that item ends we reduce your sum insured by the amount the item was insured for you don t get a refund of any premium you need to tell us if you want to cover the replacement item and pay us any additional premium that may apply. Sum insured for Unspecified Portable Valuables If we pay the sum insured for Unspecified Portable Valuables, then: your Unspecified Portable Valuable cover ends you don t get a refund of any premium you need to tell us if you want to take out this cover again.

63 How we settle certain things When we pay your claim, we settle certain things in line with the information shown in this section. Matching materials Under Buildings Insurance we only repair the damaged parts of your home. We don't pay for materials to match the undamaged parts of your home to create a uniform appearance. Carpet, vinyl, tiles or floorboards Under Buildings Insurance and Contents Insurance we only repair or replace the carpet, vinyl, tiles or floorboards in the part of your home that was damaged we don t pay for any adjoining rooms, or your entire home. Pairs, sets or collections Under Contents Insurance if there is loss or damage to a pair, set or collection, then we only cover the part that was affected. Damaged or recovered property Under Buildings Insurance and Contents Insurance If we settle your claim: for damaged property, or for lost or stolen property and it is subsequently recovered then it becomes our property, unless we let you keep it. If we let you keep the property, then: you are free to do whatever you like with it, and you are responsible for it and can t abandon it to us. How we settle certain things 55

64 Businesses registered for GST Before we make a payment, we deduct an amount equal to your input tax credit entitlement. This applies to any amount we pay, including where we state that an amount will include GST. Any payment we make to settle your claim will be considered to be made in full even if we have reduced the amount we pay as described above. Recovery against another party We may need to recover the amount we pay to settle your claim from another party for example, when someone else is responsible for the loss or damage to your home or contents. If we do this: we will use your name in any recovery action we will decide upon the conduct and settlement of the recovery action you, or anyone else covered under your policy, must notify us if you want us to recover any loss or damage that was not covered under your policy. Claims and what we pay If we are successful in the recovery action we will keep the amount we paid you to settle the claim together with any interest awarded on this amount and our costs in making the recovery. We will then pay you the balance. 56

65 How we pay claims some examples In this section, we outline examples of how we may pay some claims. These claims are based on certain scenarios. Any amount we pay for your claim depends on the details that apply to your situation. Claim 1 Repairing your home A storm damages your roof and the cost to repair it is $3,500. Policy type Buildings sum insured Optional cover Buildings Insurance $360,000 None Claim 2 Replacing your contents Someone steals your laptop computer and your plasma television from inside your home. The cost to replace these items is $5,000. Policy type Contents sum insured Contents Insurance $75,000 Basic Excess $500 Optional cover None How we settle your claim We arrange for a builder to repair your roof. We pay the builder $3,000. We ask you to pay the builder the $500 basic excess. Basic Excess $300 How we settle your claim We pay the supplier $4,700 to replace your laptop and television. We ask you to pay the supplier the $300 basic excess. How we pay claims some examples 57

66 Claim 3 Your home and contents are totally destroyed Claim 4 Replacing your Specified Portable Valuables Claim 5 Replacing your Unspecified Portable Valuables How we pay claims some examples Your home and contents are insured for their correct replacement value and are destroyed by fire. We agree to arrange temporary accommodation for the 6 months it will take to rebuild your home. Policy type Buildings and Contents Insurance Buildings sum insured $300,000 Contents sum insured $90,000 Basic Excess $1,000 How we settle your claim We choose to pay you directly for the damage. We pay you $399,400 as follows: Buildings sum insured $300,000 Contents sum insured $90,000 Less basic excess $1,000 Subtotal $389,000 Plus costs for temporary accommodation $10,400 (we pay this on top of the Buildings sum insured) Total $399,400 You lose your $3,000 18ct yellow gold ring while swimming at the beach. Policy type Contents Insurance Contents sum insured $80,000 Optional cover Yes. Specified Portable Valuables cover: $3,000 for 18ct yellow gold ring Basic Excess $300 How we settle your claim You need to provide us with a full description of the ring, including reasonable proof of its value and ownership. We agree to pay your claim by choosing to provide you with store credits to replace the ring from one of our nominated suppliers. We ask you to pay the jeweller the $300 basic excess. Your child leaves their trumpet on the bus travelling home from school. The replacement value of the trumpet is $1,200. Policy type Contents Insurance Contents sum insured $80,000 Optional cover Yes. Unspecified Portable Valuables cover: $5,000 Basic Excess $300 How we settle your claim We pay 20% of $5,000 which equals $1,000 less your basic excess of $300. This means we pay you $

67 Claim 6 Repairing your rental property loss of rent Claim 7 Liability claim at your home Claim 8 Liability claim away from your home A fire damages your kitchen and living areas. We agree your tenants need to move out for 6 weeks while the damage is repaired. The cost of the repairs is $25,500. Policy type Buildings sum insured Buildings Insurance $250,000 Weekly rent $400 Basic Excess $500 How we settle your claim We arrange for a builder to repair your home. You claim for loss of rent. We pay the builder $25,500 We pay you $1,900 as follows: 6 weeks rent $2,400 Less basic excess $500 Total $1,900 A visitor falls over a loose tile in your kitchen and sprains their ankle. We or a court decide that you are liable to pay $3,000 for the claim made against you by the visitor. Policy type Liability cover Buildings Insurance $20 million Basic Excess $300 How we settle your claim We pay the visitor $3,000. We pay our lawyers $500 to defend the claim on your behalf. You don t need to pay us the basic excess it doesn t apply to liability claims. You unintentionally crash into a parked car while riding your bicycle. The damage to the car is estimated at $1,400. We or a court decide that you are liable to pay $1,400 for the claim made against you by the car owner. Policy type Liability cover Contents Insurance $20 million Basic Excess $200 How we settle your claim We pay $1,400 to the person who owns the damaged car. You don t need to pay us the basic excess it doesn t apply to liability claims. How we pay claims some examples 59

68 7. Changes to your policy This section describes the changes that can be made to your policy: Changes you can make Changes we can make. If we need to refund part of your premium and the refund is less than $5, then we ll donate it to charity unless you tell us to pay it to you. How we pay claims some examples 60

69 Changes you can make You may need to make changes to your policy. Change your policy You may want to make certain changes to your policy. This may include adding options to increase your cover or increasing your basic excess so you pay a lower premium. You need to: contact us first, and pay us any additional premium that may apply to the change (or we won t make the change). You change homes If you sell your home your cover ends. We will only cover your new home if you ask us and we agree to cover it. You need to: contact us if you sell your home pay us any additional premium for your new home. We will: refund any amount we owe you. You want to cancel your policy You need to: contact us. We will: deduct from the premium you paid: - an amount that covers the period that you have been insured for and any relevant government charges that may apply in your state then pay you what is left of the premium. However, if you currently pay your premium by monthly instalments, you must pay us any monthly instalments that are due but unpaid and any relevant government charges that may apply in your state. We will: make the change only if we agree issue you with a current Certificate of Insurance refund any amount we owe you. You authorise us to deduct these amounts by direct debit from the account or credit card you previously nominated for monthly instalment deductions. If you tell us to cancel your policy within the 21 day cooling-off period, we ll give you a full refund see page 9 for more details. Changes you can make 61

70 Changes we can make We may need to cancel your policy or give you written notice about your policy. Cancel your policy There may be cases when we need to cancel your policy. We will: give you written notice, if required refund your unused premium after we deduct an amount that covers the period that you have been insured for. However, if you re currently paying your premium by monthly instalments, then you must pay us any monthly instalments that are due but unpaid. You authorise us to deduct these amounts by direct debit from the account or credit card you previously nominated for monthly instalment deductions. Give you written notice We may need to provide you with written notice about your policy. We will: deliver it personally mail it to your last known address deliver it by fax or electronically (where allowed by law) or send you an electronic link so you can access the notice (where allowed by law). When you change your postal or address, it s important that you tell us straight away. Changes we can make 62

71 8. Your premium This section provides information about your premium: How we work out your premium Paying your premium. 63

72 How we work out your premium How we work out your premium Your premium is based on the level of risk we need to take to insure you. If you have a low risk of making a claim, then we charge you a lower premium than someone who has a higher risk of making a claim. To assess your risk level, we use pricing factors based on our claims experience. For more details on how we work out your premium and the discounts you may be eligible for, refer to our RACV Home Insurance Premium, Excess, Discounts & Benefits Guide. You can get a copy by visiting or contacting us on 13 RACV ( ) or by visiting an RACV shop. Discounts you may be eligible for When you take out insurance with us, you may be eligible for one or more of these discounts: Years of Membership Benefit No Claim Bonus Linked Policy Discount Multi-Policy Discount. Before we tell you the amount of your premium, we include any discounts that apply to your policy. Your current Certificate of Insurance shows the discounts we give you. It s important for you to check your current Certificate of Insurance to make sure you are getting the discounts you re entitled to and that your personal information is accurate, complete and up-to-date. We may change the discounts or introduce more discounts from time to time. Years of Membership Benefit We reward you with a Years of Membership discount which is linked to the colour of your RACV membership card. RACV Years of Membership Benefit increases the longer you are with us. No Claim Bonus We give you a No Claim Bonus to reward you for having a good claims record. We calculate your No Claim Bonus based on your insurance and claims history. Linked Policy Discount If you have Buildings Insurance and Contents Insurance for the same address, then we give you a Linked Policy Discount. If you currently receive a Linked Policy Discount and are eligible to receive a Multi-Policy Discount, the Multi-Policy Discount will replace your Linked Policy Discount. Multi-Policy Discount We give you a Multi-Policy Discount when you have: Buildings Insurance or Contents Insurance and Motor Insurance with us. 64

73 Paying your premium It s important to pay your premium on time. This section outlines how you can pay your premium and what happens if you don t pay it. Payment options You can pay your premium: annually in one lump sum, or in monthly instalments by direct debit from an account or credit card you nominate (if we offer this option to you). Your current Certificate of Insurance shows the amount you need to pay and the due date for your annual premium or for each monthly instalment. What happens if you don t pay on time Unpaid annual premium when you take out your insurance, if you don t pay your annual premium by the due date, then we will give you written notice to cancel your policy when you renew your insurance, if you don t pay your renewal premium by the due date, your policy will end. Unpaid monthly instalments An instalment is unpaid if it is dishonoured, rejected, not received or we are otherwise unable to deduct it from the nominated credit card or account. When you take out insurance, if you don t pay the first monthly instalment by the due date, then we will give you written notice to cancel your policy. If any other monthly instalment is unpaid: for one month after its due date, your policy is automatically cancelled without notice to you at the end of that one month period for 14 days or more after its due date, we will refuse a claim for incidents that occur 14 days or more after the due date. How we work out your premium 65

74 9. Other information you need to know When you take out insurance with us, you need to know some other things that are outlined in this section: How to resolve a complaint or dispute Privacy of your personal information General Insurance Code of Practice Financial Claims Scheme Aussie Assist 24 hour emergency assistance Prime Cover Home Insurance Aussie Assist RACV Prime Cover. 66

75 How to resolve a complaint or dispute Step 1 Talk to us first If you have a complaint, the first thing to do is call 13 RACV ( ) or go into your local RACV shop and talk to one of the staff. If the staff member is unable to resolve the matter for you they will refer you to a manager. If you are not satisfied with the response, you can go to step 2. Step 2 Contact RACV Insurance Member Relations If the matter is still not resolved, the manager will refer you to the RACV Insurance Member Relations Department, who will arrange a review of your complaint. Insurance Member Relations is a specialist area within RACV Insurance established to deal with Insurance issues and complaints. If you are still not satisfied with the outcome, you can go to step 3. Step 3 Seek an External Review of the decision You are entitled to seek an external review of the decision. Information about the options available to you will be provided, including if appropriate, referring you to the external dispute resolution scheme administered by the Financial Ombudsman Service (FOS). Call 13 RACV ( ) if you would like more information about the complaint and dispute resolution procedure. How do I contact RACV Insurance Member Relations with my complaint? RACV Insurance Member Relations can be contacted by phoning , faxing (03) or ing [email protected] 67

76 Privacy of your personal information Privacy of your personal information We are committed to handling your personal information in line with the privacy laws and the terms of this PDS. You can choose not to give us some or all of the personal information we ask for. But, this will affect our ability to provide you with cover. Privacy Charter The Privacy Charters outline: how to contact us about privacy how to change your marketing consent how to access your personal information. To get a copy of the RACV Privacy Charter, visit the RACV website visit an RACV Shop, or by calling 13 RACV ( ). When you provide your personal information Collecting and using your information You acknowledge and consent to us, our agents, distributors and our related entities as well as RACV (their agents and their related entities) collecting and using your information on a confidential basis to: consider your insurance application and any subsequent application for insurance underwrite and price any policy calculate and offer discounts issue a policy to you administer your policy investigate, assess and pay any claim made by or against you or that could be made against you recover money paid to you or recover debts you have incurred. Collecting and disclosing your information For these purposes, you acknowledge and consent to us, our agents, distributors and our related entities as well as RACV (their agents and their related entities) collecting your personal information from, and disclosing your information to: agents related entities other insurers insurance reference bureaus law enforcement agencies service providers (which includes investigators and recovery agents, lawyers, assessors, repairers, suppliers, advisers and any agent of these) any credit provider that has security over your property. 68

77 Information you provide about another person When you provide personal information to us, our agents, distributors and our related entities as well as RACV (their agents and their related entities) about another person: you must be authorised to do so, and you must inform that person of the following details: - who we are - how we use and disclose their information, and - that they can gain access to that information. You don't need to inform that person if informing them would pose a serious threat to the life or health of any individual. An example might be if you provide information about another person s insurance and claims history. Privacy of your personal information for marketing purposes We may provide your personal information to RACV, their agents and their related entities to use for marketing purposes. Your personal information will help RACV, their agents and their related entities to provide you with a range of leading products and services. How we and RACV handle your personal information is explained in the Privacy Charters. When you provide your personal information You acknowledge and consent to us, our agents, distributors and our related entities as well as RACV (their agents and their related entities) collecting and using your personal information to: contact you for market research provide you with information and offers about products and services provide you with information and offers about products and services offered by other organisations and any agents of these that we or RACV promote. We may do this via post, sms, or telephone. However You can 'opt out' from receiving marketing information at any time by contacting RACV. You must inform RACV if you do not want your personal information used for these marketing or market research purposes. Privacy of your personal information 69

78 General Insurance Code of Practice General Insurance Code of Practice We support and comply with the General Insurance Code of Practice. The objectives of the Code are to: promote better, more informed relations between insurers and their customers improve consumer confidence in the general insurance industry provide better mechanisms for the resolution of complaints and disputes between insurers and their customers, and commit insurers and the professionals they rely on to higher standards of customer service. You can get a copy of the Code from the Insurance Council of Australia by visiting Financial Claims Scheme If we become insolvent, this policy may be protected under the Federal Government's Financial Claims Scheme administered by APRA. This means that if you meet certain eligibility criteria you may receive payment under the scheme. For more information please see or contact the APRA hotline on Aussie Assist help with emergencies RACV provides free emergency assistance in and around your home with Aussie Assist. Aussie Assist is an emergency resource and information service that provides you with: free assistance over the phone help with finding tradespeople help with arranging repair estimates home emergency help for example blown fuses, burglary, burst water pipes and bushfire ongoing support to ensure problems are resolved. Prime Cover Home Insurance If you re 50 years or older, you will be eligible for RACV Prime Cover Home Insurance, which provides extra benefits and premium reductions on your home insurance policy for example an option to have a Nil basic excess, so that if you make a claim, you will not have to pay anything. Additional Aussie Assist Benefits for Prime Cover Home Insurance If you have Prime Cover Home Insurance, additional benefits include: 24 hour medical assistance service home maintenance legal assistance. For more details on Aussie Assist and Prime Cover Home Insurance, refer to our RACV Home Insurance Premium, Excess, Discounts & Benefits Guide. You can get a copy by visiting or contacting us on 13 RACV ( ) or by visiting an RACV shop. 70

79 Definitions The following words have special meaning. Agistment is to take in animals and feed or pasture them for payment. Accidental Damage is damage that is caused unintentionally to your home or contents. Accidental damage is not covered under any of the listed events (see Table 3.1 page 19). You can purchase this as an optional cover. Buildings sum insured is the amount of insurance you choose for your home. This amount is shown on your current Certificate of Insurance. Common property is property owned by the owners corporation or similar body. Contents are those items that are not permanently attached or fixed to the structure of your home that you or your family: own, or are responsible for as part of a hire or lease agreement or written employment contract. There are 4 categories: General Contents Specified Items Specified Portable Valuables, and Unspecified Portable Valuables. Contents sum insured is the amount of insurance you choose for your contents. It is made up of: your General Contents sum insured, plus the sum insured that applies to any optional cover you have for: - Specified Items - Specified Portable Valuables - Unspecified Portable Valuables. De facto is a person living with another in what we determine to be a genuine domestic relationship. Excess is the amount you pay when you make a claim on your policy. The amount and type of excess that applies to your policy is shown on your current Certificate of Insurance. Family is your family who normally lives with you at your home which means your legal or de facto spouse and any member of your family or your spouse s family. Fittings are any items that can be removed from your home without causing damage to your home. Fixtures are any items that are permanently attached or fixed to the structure of your home that can't be removed without causing damage to your home. Definitions 71

80 Flood General Contents sum insured is the amount of insurance cover you choose for your General Contents. Listed event is an event we cover under your policy shown in Table 3.1 page 19. Definitions means rain which results in water pooling on, flowing from or failing to drain away from: - a body of water - land - roads and streets water that escapes or is released from a body of water. A body of water can include a river, lake, dam, stormwater channel or canal, but not the sea. Fusion is the burning out of an electric motor or its wiring as a result of the electric current in it. You can purchase this as an optional cover. General Contents are those things you or your family keep in and around your home. General Contents does not include: Specified Items Specified Portable Valuables Unspecified Portable Valuables. Home is any enclosed building at your site that has walls and a roof and can be locked up which you use mainly for domestic purposes: for Buildings Insurance, your home includes any home improvements or fixtures for Contents Insurance, if your home is a flat or unit, your home is your flat or unit and includes any lockable storage compartment that is reserved for you in another section of the building or complex that your flat or unit is part of. Home improvements are any permanent additions at your site that add to the cost of rebuilding or repairing your home, such as a garage, in-ground pool, above ground pool (when enclosed by decking), carport, pontoon, boat jetty and permanent landscaping features. We do not consider soil or bushland to be home improvements. Incident is a single occurrence, or a series of occurrences arising out of the one event. Mobility scooter is a mobility aid similar to a wheelchair but configured like a motor scooter. It is often referred to as a power-operated vehicle/ scooter or electric scooter. Pet is a domestic animal not used for racing or commercial breeding purposes. Policy period is the period shown on your current Certificate of Insurance. Premium is the total amount you pay for your insurance that includes applicable government taxes such as GST, duties or charges payable by you. It is shown on your current Certificate of Insurance. If you pay by monthly instalments, the premiums means the total of the instalments you must pay for the full policy period. 72

81 RACV Member a person or business holding a renewable product with RACV. Renewable products include Emergency Roadside Assistance, RACV Club Membership, Insurance, monitored home security systems, personal loans, novated leases and debentures. RACV membership card colours are linked to the following continuous years of RACV membership: Blue - 0 to 4 years, or as determined by RACV. Bronze - 5 to 9 years, or as determined by RACV. Silver - 10 to 24 years, or as determined by RACV. Gold - 25 to 50 years, or as determined by RACV. Gold years or more, or as determined by RACV. Site is the land where your home is located and the yard or garden surrounding it that you use primarily for domestic residential purposes, at the address shown on your current Certificate of Insurance. The site includes any land or other area that touches your site and for which any statutory authority has made you responsible, but it does not include the nature strip outside your home. Specified Items are those contents items that you or your family own or are responsible for and you list separately for insurance cover inside your home. See Table 4.3 on page 42. Specified Items are shown separately on your current Certificate of Insurance. You can purchase this as an optional cover. Storm means a violent wind, cyclone or tornado rain, thunderstorm, hail or snow. Storm surge is the increase in sea level that usually happens when there is an intense storm or cyclone. Strata any form of land title which allows for multiple titles to exist in or on a building or land where the common property is held under a single separate title. Tools of trade are those items or equipment used in any business, trade or profession. This does not include your home office equipment. Set is a pair or group of items that belong together, are similar in appearance and are related by a common size, shape, colour, pattern or material. Specified Portable Valuables are those contents items that you or your family own or are responsible for that you can take outside your home. Specified Portable Valuables are shown separately on your current Certificate of Insurance. You can purchase this as an optional cover. Definitions 73

82 Unspecified Portable Valuables are those contents items that you or your family own or are responsible for and you can take outside your home. You can nominate a set amount of extra cover for these items you do not need to list them separately. You can purchase this as an optional cover. Us, we and our is the product issuer named on the inside cover of this Product Disclosure Statement and Policy Booklet. You all the people named as the insured on your current Certificate of Insurance. If more than one person is named as the insured, we will treat a statement, act, omission or claim by any one of those people as a statement, act, omission or claim by all those people. Definitions 74

83 Index a accidental damage 40 definition 71 excess 50 accommodation temporary 29, 30 actions of the sea 46 agistment liability 37 definition 71 agreement with you 9 animal damage 25 art works 15, 42 asbestos 37 atmospheric conditions 46 attempted theft 23 Aussie Assist 70 b basic excess 49, 50, 57-59, 61, 70 birds 25, 46 boarding houses 11 bodily injury broken glass - buildings 24 broken glass - contents 24 building materials 13, 27, 31 buildings we insure 11 we don t insure 11 buildings insurance 6 what we pay 8, buildings sum insured 7 definition 71 building regulations 32 building work 37 burn out of electric motors - fusion 40, 72 c cancelling your policy 61, 62 you want to cancel 61 we want to cancel 62 caravans 13, 15 carpets 11, 12, 28, 29, 55 cash 15, 33, 53 CDs 15, 42 certificate of insurance 6-9 changes to your policy changing homes 61 your policy 61 civil commotion 25 claims businesses registered for GST 56 carpet, vinyl, tiles or floorboards 55 credit provider s rights 53 damaged property 55 examples excess 50 settlement 49, 52, 54, 55 lifetime guarantee 53 making a claim 49 matching materials 55 pairs, sets or collections 55 recovery against another party 56 what we pay for - buildings insurance 8, contents insurance 8, working out what we pay 51 your responsibilities 49 code of practice 70 coins 15, 42 commercial buildings 11 common property 28, 73 definition 71 complaints process 67 conditions 9 general 9, 46 liability cover special 9 contents categories 12 contents we don t insure 13 definition 71 general contents 12, 14, maximum amounts we pay 15, replacement value 8 specified items 7, 12, 42, 73 specified portable valuables 7, 12, 43, 73 types of contents we insure 12 Index 75

84 Index unspecified portable valuables 7, 12, 44, 74 where we insure them 14, contents insurance 6 what we pay 8, contents sum insured 7, 8 definition 71 contract 9 cooling-off period 9 co-operation 49 cover events we cover 7, liability cover optional cover 8, 12, 15, other cover Prime Home Insurance 70 sum insured 7 type of insurance 6 who s covered by policy 6 credit provider s rights 53 credit card theft 33 what are not contents 13 computers (including software) 15 collections 15, 42, 55 curios 15, 42 cyclone, see storm d death 34-37, 46, 47 de facto 6 definition 71 definitions 4, 11, demolishing costs 31 depreciation 46 digital music 15, 42 discounts 64 display homes 11 dispute process 67 DVDs 15, 42 e earthquake 22 electronic devices 16 embargo 9 emergency assistance 70 erosion 46 events we cover 7, accidental damage 40 animal damage 25 attempted theft 23 broken glass buildings 24 broken glass contents 24 burn out of electric motors fusion 40 civil commotion 25 earthquake 22 explosion 25 fire 23 flood 20 impact damage 24 lightning 22 malicious act 23 oil leaks 21 riots 25 storm 20 theft 23 tsunami 22 vandalism 23 water leaks 21 excess 49-53, accidental damage 50 basic 50, 57, 58, 61, 70 definition 71 special 50 exclusions 9 general 9, 46, 47 specific 9, 43, 46, 47 liability cover 36-37, 43 exhibition homes 11 explosion 25, 46 explosives 47 extreme temperatures 46 f family 6 definition 71 faulty design or workmanship 47, 53 fences 20, 21 financial claims scheme 70 fire 23 fittings 11 definition 71 fixtures 11, 21, 24 definition 71 owners and landlords 29 76

85 flood 20 definition 72 food spoilage 28, 50 funeral expenses 34 furniture and furnishings 28, 29 fusion 19, 40 definition 72 optional cover 40 g general contents 12, 14, definition 72 increasing your cover for 15 insured under optional cover 15 limits for contents 15 maximum amount we pay 15, 41, 42 what we don t insure 13 what s included 12 where we insure them 14, general contents sum insured 7 definition 72 general exclusions 9, 46, 47 general insurance code of practice 70 GST 9, 49 glass 24, 44 gold items 42 good repair 47 goods for sale 13 greenhouse 24 h hire or lease agreement 12, 71 home 11 definition 72 home improvements 11 definition 72 home office equipment 12 hostels 11 hotels 11 i impact damage 24 incident definition 72 input tax credit 56 insurance type of insurance 6 inspections 49 insured person 6 more than one 6 intentional act 46 j jewellery 12, 15, 41, 42 k keys 33 l landlord fixtures 28, 29 furniture and furnishings 28, 29 loss of rent 30 landscaping 72 landslide 20, 22, 25, 37, 46 leaks 21 lease agreement 12, 71 liability cover claim examples 59 lodging a claim 36 legal costs 35 what is it 35 what we cover 35 what we don t cover 37 when we provide it 36 lifetime guarantee 53 light fittings 11, 24 lightning 22 limits location of contents 14, 16, 17, 28 buildings insurance 6, 52 contents insurance 6, 8, 14, 15, 54 maximum paid for general contents 15, 41, 42, 54 linked policy discount 64 listed events see events we cover definition 72 locating the cause of damage 31 locks 33 loss of rent 30, 52, 59 m maintaining and occupying your home 47 making your site safe 31 malicious act 23 matching materials 55 Index 77

86 Index medals 15, 42, 44 meeting building regulations 32 mobile homes 16 mobility scooter 13, 37, 72 monthly instalment unpaid 65 mortgagee discharge costs 32 motels 11 motor vehicles 13, 15 mould 46 moving into your new home 14, 17, 42 multi-policy discount 64 n new for old 8 no claim bonus 64 o oil leaks 21 optional cover 7, 8, 12, 14, accidental damage 40 burn out of electric motors fusion 40 specified items 8, 14, 42 specified portable valuables 8, 14, 43 summary 39 unspecified portable valuables 8, 14, 44 other cover building materials 31 credit card theft 33 demolishing and removing debris 31 fixtures for owners and landlords - strata scheme 28 food spoilage 28, 50 funeral expenses 34 furniture and furnishings for landlords - non strata scheme 29 - strata scheme with no active owner's corporation 28 keys and locks 33 locating the cause of damage 31 loss of rent for landlords 30 meeting building regulations 32 mortgage discharge costs 32 rebuilding fees 32 temporary accommodation for home owners 29 temporary accommodation for tenants or strata scheme owners 30 visitors belongings 33 our 74 owner's corporation 28-30, 71 p pairs, sets or collections 55 PDAs 16 personal information privacy of how we use it 68 pet definition 72 pipes 21, 24, 70 plants 13 police 49 policy 9 limits 14, 15, 16, 42, 43, 51 period 72 type of policy 6 type of insurance 6 pollutants 46 power surge 22 premium 9, definition 72 discounts 64 how we work it out 64 if you don t pay it 65 paying it 65 payment options 65 prescription medication 28, 40 Prime Home Insurance Cover 70 privacy privacy charter 68 product disclosure statement 9 proof of loss and ownership 49 q quotes 49 r RACV Member 73 rebuilding fees 32 recovered property 55 removing debris 31 renovations or alterations 20, 31, 32, 37, 40 replacement value 8 responsibilities 78

87 when you make a claim 49 riots 25 rodents see vermin s sanitary fixtures 21, 24 sea, actions of the 46 set definition 73 silver items 15, 42 shower recess/screens 21, 24, 28 shrubs 13 site 11 definition 73 making your site safe 31 spare parts 15 special excess 50 special conditions 9 specified items 7, 12, 42 definition 73 specified portable valuables 7, 12, 43 definition 73 sporting activity 37 sporting equipment 12, 40, 43, 44 stamps 15, 42 stock 13 storage 14, 16, 17, 42, 72 storm 20 definition 73 storm surge definition 73 strata or similar scheme 28, 29, 30, 36, 73 subsidence 20, 22, 25, 37, 46 sum insured 7 buildings sum insured 7 contents sum insured 7 general contents sum insured 7 optional cover 8 supplementary product disclosure statement 9 swimming pools 20, 21, 46 t temporary accommodation home owners 29 tenants or strata scheme owners 30 terrorism 46 theft 23 tools of trade 15, 42 definition 73 trees 13, 24 tsunami 22 u unoccupied 47 unpaid premium 65 unspecified portable valuables 7, 12, 44 definition 74 us 74 v vandalism 23 vehicles 13, 15, 24, 37 vermin 25, 46 visitors belongings 33 w watches 12, 15, 41, 42 water damage 20-22, 40, 46 water leaks 21 watercraft 13, 15, 16, 24, 37 we 74 wear and tear 46, 53 works of art 15, 42 written employment contract 12 definition 71 written notice 62, 65 y years of membership benefit 64 you 6 definition 74 your family 6, 12 Index 79

88 80 Notes

89 The information in the booklet is current at the date of preparation. More up-to-date information may be available by calling 13 RACV ( ). We will give you a free paper copy of any updates when you request them. If it becomes necessary, we will issue you a supplementary or replacement Product Disclosure Statement. This Product Disclosure Statement was prepared on 9 January Copyright 2012.

90 Royal Automobile Club of Victoria (RACV) Ltd ABN Princes Highway Noble Park North Victoria 3174 Australia RACV MemberLine 13 RACV ( ) Claims Assistance and Aussie Assist Fraud Hotline racv.com.au Edition 2 SAP G /12